KUALA LUMPUR, June 6 — Employers who are yet to register and contribute to the Social Security Organisation (Socso) are reminded to do so immediately or face enforcement action starting July 1.
Socso, in a statement today, said that employers still have the opportunity to register their companies and employees without being subject to enforcement action during the two-month amnesty period from May to June.
It said that an operation dubbed Ops Kesan would be launched in July to enforce the Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
“It is crucial that they comply with these acts in order to guarantee social security protection for all workers, including foreign workers in Malaysia.
“The 14th Ops Kesan aims to ensure that all employers who hire at least one employee (regardless of the amount of salary) register their companies and workers as per the provisions of Sections 4 and 5 of Act 4 as well as Sections 14 and 16 of Act 800,” it said.
Socso said that under the two laws, employers who fail to register their companies and employees can be issued a compound of up to RM5,000 or charged in court.
“Those who fail to pay the compound can be prosecuted in court and fined up to RM10,000 or jailed for two years or both upon conviction,” the statement read.
In addition, it said that the Interest on Late Payment of Contributions (ILPC) would be imposed at a rate of six per cent per annum for each day of contributions not paid within the stipulated period.
The statement also said that Socso will not compromise with employers’ non-compliance or consider exempting them from enforcement actions if they still fail to do so during the grace period.
“Sosco calls on all eligible employers who have not yet registered and contribute to immediately do so voluntarily either through the ASSIST Portal or visit any of the 54 Socso’s offices nationwide to avoid being taken action,” it said.